All Forum Posts by: Marcos Gonzalez

Most of my investors are doing DSCR loans. Higher rate, but no income verification, can close in LLC and 15 day closes.

 Always look for a NMLS #. You can pop that into google and always see who you are dealing with.  

If its SFR you can do 15% with PMI.

If you can find a cash flowing property can you do a DSCR loan. As long as the rent covers PITIA you can get financing. The rates are usually 2% higher than conventional financing. Best part is you wont need to show any income taxes just need a credit score, an appraisal, and a cash flowing property.

With DSCR I can go as low at 0.8 but yes ideally you want to be closer to 1

@Chris Seveney @Steven Goldman but how can I ask the seller if we are purchasing through a wholesaler? How would the wholesaler get their cut. I guess I don’t know how the process would look like. 

Hello BP,

I am under contract on a SFR for 187k with an ARV around 325K. Right now I have a private loan with a 10% return on their investment. So when we are done flipping the home we will owe the private money lender 18,700. I recently have been learning about seller financing and see if this could save us money and increase our profit. The home is being sold to us through a wholesaler, so I guess my question how could I ask an see if they were open to seller financing ? Would I ask the seller or the wholesaler ?

@David Ramirez I think that is what I am leaning towards with this being our 1st flip, it seems like the PM loan will be an easier process. Also building this relationship can help us in the future close on more properties with cash.

@Scott E. Thanks for the reply. 

Hello BP,

I am doing my first flip with my brother in law. It's a SFR that we are purchasing for 187k with and ARV of around 320k. We are estimating that it will need around 50k of improvements putting us at around 250k all in. We found a private money lender that will front us all the 250k in return for 10% on his investment so 25k. With his cut we would be in for about 275k leaving around 45k profit for both os us. This seems pretty good for our first flip, I am just wondering would it better to go through a HM lender so we could profit more. Or is this PM loan going to be way easier?

Thanks, 

Popcorn